The Federation of Small Businesses states that around 50,000 commercial businesses are forced to close each year because of late payment of debts. This indicates just how big of an issue business’s face when money owed to them is not paid on time or is chased for so long that it is written off as money lost.
Internal credit control is a key part of keeping debtor levels down but when you have exhausted this option, it may be time to speak with a solicitor. There’s no specific time frame for getting a lawyer involved but as a general rule, it’s suggested that once all credit control procedures have been tried and a debt has been outstanding for more than 90 days, then getting external help may be a good option for you.
Time limits apply to taking action and in most cases, the debt has to be paid or court proceeding issued within 6 years of the date of the invoice.
How can a solicitor help?
At Hegarty Solicitors, we have experienced and qualified solicitors who can help with the following:
- Drafting of Formal Letter of Demand and Final Warnings
- Instigating debt recovery proceedings or the service of a statutory demand
- Advise on the legal strength of a disputed debt
- Mediation to reach a settlement
- Assessing the potential financial difficulties, debtor claims and advising on next steps